Good works do good things for a business

Companies keen to retain good staff can get a head start without breaking the bank, simply by doing good works.

That’s because corporate social responsibility (CSR) projects increase workers’ emotional attachment to their employer, an industrial psychologist’s master’s degree research shows.

CSR is even more effective if it tackles social problems that employees regard as important, says Amorei van der Westhuizen in the SA Journal of Industrial Psychology. She undertook the research under the academic supervision of Prof Johan Malan of  Stellenbosch University.

The South African subsidiary of a multinational fast-moving consumer goods company which implements CSR strategies gave Van der Westhuizen permission to approach 400 employees, and 172 of them — mostly nonmanagerial staff and younger than 40 — completed her online questionnaire.

A key finding was a significant relationship between perceived CSR and the employees’ affective commitment to the company — identifying with it, feeling involved in its activities and having an emotional attachment to it. One of the ways the questionnaire measured this commitment was by asking staff whether they would be happy to spend the rest of their careers at the company.

Positive perceptions about CSR also suggested that the employees see the company as a fair employer.

To take advantage of these internal benefits of CSR, organisations should ensure that corporate communications highlight CSR policies and activities, says Van der Westhuizen.

The managers of large CSR programmes at Pick n Pay and Coca-Cola Beverages SA (CCBSA) tell the FM that they can confirm the findings of Van der Westhuizen’s research.

“Our people want to know they are working for a company that genuinely cares about South Africa and its people,” says Vaughan Pierce, executive: ESG at Pick n Pay. “Engaging staff in our CSR initiatives creates a sense of purpose beyond their usual work tasks, and fosters loyalty.”

Nozicelo Ngcobo, director of public affairs, communications & sustainability at CCBSA, says: “Our employees take great pride in what we do together ... and by extension [this] increases their loyalty.”

Pierce and Ngcobo both say they have seen the value of investing resources in dealing with social problems employees regarded as important, as Van der Westhuizen suggests. 

“Our staff live in the communities we serve, so we value their suggestions,”  says Pierce, adding that most Pick n Pay stores are active in their communities and that staff at all levels tend to take part. “Involving staff in identifying initiatives promotes their commitment and support ... as they feel a part of providing a solution to a problem.”

Ngcobo says making employees part of the solution is critical. “It encourages innovation and ensures a rich employee volunteerism programme,” she says. “Employees do not exist in isolation from their communities. They live in these spaces and understand the needs ... Through their knowledge, we can have a better understanding of our host communities.”

Van der Westhuizen says other studies on CSR have linked it to improved financial performance, investor relations, customer perceptions and company reputations, and Pick n Pay and CCBSA say they’ve seen this happen.

“CSR is not a good-to-have, but will ensure sustainable, profitable growth in the long term,” says Ngcobo.

Pierce says “doing good is good business” has been a fundamental value at Pick n Pay since Raymond Ackerman founded the company 55 years ago. “Through our commitment to society and the environment, we build greater customer loyalty, attract and retain talent, and promote ethical and sustainable business practices.”